[Solved] Quaker State Inc

Question 62
Multiple Choice

Quaker State Inc.offers a new employee a lump-sum signing bonus at the date of employment.Alternatively,the employee can take $8,000 at the date of employment plus $20,000 at the end of each of his first three years of service.Assuming the employee's time value of money is 10% annually,what lump sum at employment date would make him indifferent between the two options?

A)$23,026.
B)$57,737.
C)$62,711.
D)None of these answer choices is correct.

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